Ethereum layer-2 wallet addresses using Uniswap’s decentralized exchange saw a significant increase last month compared to June. Data from Dune analytics revealed that 8.5 million Ethereum addresses traded on Uniswap via layer-2 solutions such as Arbitrum, Base, Optimism, Polygon, and ZKSync, reaching an all-time high. Uniswap, being the largest decentralized exchange on any blockchain, generated nearly $100 million in fees in June.
Layer-2 solutions are built on or alongside Ethereum’s mainnet to alleviate congestion and reduce transaction costs on the network. Despite Ethereum’s reputation for secure and permissionless transactions, on-chain bottlenecks can lead to high fees for users. Layer-2 solutions aim to solve these issues and provide a more cost-effective way to engage with the decentralized finance ecosystem.
While protocols like Base and Polygon already offered lower gas fees compared to Ethereum, the recent Dencun upgrade in March further enhanced the cost efficiency of layer-2 networks. Transactions on layer-2 networks now cost less than $1 for sending Ether and under $3 for swapping digital assets, making them more attractive to users. This affordability has contributed to the surge in layer-2 addresses since February, just before the implementation of the Dencun upgrade.
However, despite the increase in layer-2 addresses, total value locked (TVL) across DeFi chains, including Ethereum and its layer-2 solutions, has experienced a decline. According to DefiLlama data, TVLs have dropped by up to 25% in the last 30 days, reflecting market corrections and a broader downturn in the altcoin market.
In conclusion, the rise in Ethereum layer-2 addresses trading on Uniswap indicates growing adoption of cost-effective solutions for decentralized trading. While TVLs have decreased recently, the long-term potential of layer-2 networks to improve scalability and reduce transaction costs remains promising for the DeFi ecosystem.